China Yuchai International is a holding company that manufactures and sells light to heavy-duty engines, employing 8,177 staff, and operates through Yuchai and HL Global Enterprises segments. Yuchai focuses on diesel engines for various applications, while HLGE engages in hospitality and property development in China and Malaysia.
Based on our analysis, China Yuchai International (CYI) has received a 5 out of 5 stars undervalued rating from Cashu. The company's key financial ratios present a compelling case for its undervaluation compared to sector averages.
The price-to-earnings (PE) ratio for CYI stands at 1.53, significantly lower than the sector average of 20.45. A lower PE ratio suggests that investors are paying less for each unit of earnings, indicating potential undervaluation. Similarly, the price-to-book (PB) ratio of 0.23, compared to the sector's 2.32, indicates that the company's stock is trading at a fraction of its book value, further suggesting undervaluation.
In terms of profitability, China Yuchai International boasts a net profit margin of 1.58, outperforming the sector average of 0.75. This indicates that CYI is more efficient at converting revenue into actual profit. The return on equity (ROE) ratio of 2.43 surpasses the sector's 1.73, highlighting the company's effectiveness in generating profits from shareholders' equity.
Additionally, CYI offers a dividend yield of 4.08, well above the sector average of 1.09, making it an attractive choice for income-focused investors. The return on assets (ROA) ratio of 0.91 compared to 0.36 for the sector illustrates CYI's superior ability to utilize its assets efficiently to generate profits.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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